Bond Market Stability and the Uzbek Investment Landscape: Insights from TBC Bank
At the «Capital Market: New Opportunities for Investment» conference in Tashkent, Spartak Tetrashvili, Chairman of TBC Bank, addressed the critical role of bonds in Uzbekistan’s financial development and the challenges holding back their growth.
«Most people in Uzbekistan still don’t fully understand what a bond is,» Tetrashvili noted. «Many prefer to keep money under the mattress—or invest in livestock, seeing it as a safe and tangible asset.
He stressed that integrating these informal savings into the formal financial system is crucial for economic progress. The biggest obstacle? Low financial literacy.
“In our first two years, we relied mostly on deposits. But as demand for credit soared, we realised we needed diversified funding tools,» he said. «That’s where bonds come in, they offer companies more stability than deposits, as funds are locked in for a fixed term.»
TBC Bank has already issued bonds in Uzbekistan. However, institutional investors remain limited. «Outside retail placement, there aren’t many local institutions able to invest large sums, which is why we’re looking beyond Uzbekistan’s borders,» he explained.
Tetrashvili highlighted that global financial giants, JP Morgan, Goldman Sachs, BlackRock, are now investing in Uzbekistan, thanks in part to TBC Group’s international presence and credibility. «We’re not just raising funds—we’re selling Uzbekistan’s investment story,» he added. «And it’s becoming a hot topic in global markets.»
Yet risks remain. «Not everyone is ready to take on UZS currency risk, especially at scale. We still lack local partners for major investment volumes,» he said.
He also pointed to the importance of developing a strong secondary bond market: «Investors don’t just look at yield, they also need clear exit options. A healthy secondary market is essential for that.»
The conference, supported by TVS Bank, Payme, the National Association of Investment Institutions and Universal Bank, continues with sessions focused on attracting investors, shifting investor focus in Uzbekistan, bond innovations, and alternative asset classes. Notable speakers include officials from Uzbekistan’s National Agency for Prospective Projects, and Tashkent Republican Stock Exchange.
Kursiv Uzbekistan also reports about several key obstacles to the growth of Uzbekistan’s securities market.
